When you do this you find that our net wealth is far less than most people think it is - we think we have money in the bank and future benefits promised by the government, but when we net everything out, we have only about 38 cents for every dollar in promised benefits and assets.
Note: I did not include net state and local liabilities or our Federal Debt owned by foreigners. If were to do so, the picture would look somewhat worse.
Apply the same logic to Warren Buffet. Mr. Buffet is worth a lot of money - something like $55 Billion. And he has quite a few social security and medicare benefits coming to him - perhaps a million dollars worth. And according to Mr. Buffet, he should pay his 'fair share'. In the case of this balance sheet exercise, that must mean his fair share of the nation's obligations, right? This means that his share of the unfunded liabilities and debt is roughly $66 Billion. Oh dear, it turns out the old Buffer is bankrupt. Pay up, Warren, pay up.
But of course that's not what he's offering. What he is saying is that of the tiny fraction of his wealth that he chooses to recognize as income this year, he (and all of the little people below him) should pay a higher share. Let's say he increased his Federal tax rate from 17% to 100% of his income - all $39 Million. That would constitute about 0.00072505 of his wealth. That's the sacrifice that he wants to make and is getting showered with MSM plaudits for offering. Another way to put it is the average household net worth is about $50,000. If they were to offer an equivalent 'sacrifice' it would come to the princely sum of.....$36 and change.
His wealth, well that he's keeping and putting in a foundation that will keep his glorious name alive for generations to come - or at least until the economy collapses.
He's a homespun humbug. Always has been and apparently always will be.
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